House prices in the UK could surge by up to 13% by the end of next year due to the government’s measures to subsidise mortgages and slash loan rates, according to a new report.
The report, from the investment bank Morgan Stanley, forecasts an improved outlook for the property market for the first time in several years.
Its central forecast is for an 8% rise in average house prices by the end of next year, but its “bull case” is for a 13% gain.
The report, from the investment bank Morgan Stanley, forecasts an improved outlook for the property market for the first time in several years.
Its central forecast is for an 8% rise in average house prices by the end of next year, but its “bull case” is for a 13% gain.
The forecast will add to growing fears that George Osborne’s growth strategy could lead to a new cycle of boom and bust.
Prices are already rising rapidly in the capital with the potential there could be a ripple effect to other regions in the coming months.
Last week the OECD became the latest organisation to warn that the chancellor’s Help to Buy scheme, which will underwrite up to £130bn of mortgage debt, could push up prices rather than increase the supply of new homes.
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